I believe the dip is a reaction to AAPL WWDC (Worldwide Developers Conference)in which among other things introduced was Safari Autoplay blocking for news sites that automatically play videos and intelligent tracking prevention.
Rob
looks like a Google Chrome ad-blocker could be devastating
Isn’t a huge portion of Alphabet’s revenue from ads? I can see why Apple would implement an ad-blocker on their browser, but it doesn’t seem like good business for Google to do it.
I don’t own GOOG, so I don’t really know. Maybe ad revenue is less of it’s business than I thought.
Most of Alphabets revenue, almost all, is generated by ads. So they are being, and will be affected by ad-blockers. But most comes from search advertising. Advertisers basically pay to have their site come up when anyone searches keywords. They basically outbid each other, whoever pays the most comes up on the top of the list. Alphabet also collects $ when the link is actually clicked on too. Per click advertising.
A smaller portion, but still substantial comes from non-google sites displaying ads based on the same google algorithms. The site, and Alphabet both collect $ when one of these sites is clicked on.
https://amigobulls.com/articles/2017-05-22-alphabet-inc-stoc…
This website does a pretty good job explaining it, and how they are handling it. The chrome as-blocker will block the more “intrusive” ads. The ones that pop-up, block screens, …
Users more likely to just click away from site with those. The ads that come up on side, or within website material, are less annoying to users, and they either click or ignore them.
So, while it seems counter-productive, their plan is by having their own ad-blocker, that eliminates the most annoying ads, users will be less likely to use an outside ad-blocker.
Hope that clears it up at least a little.
Kevin
5 Likes
How many of you use ad-blockers?
To those that don’t:
What would you do if suddenly, every webpage you go to, 10 new windows pop-up advertising all sorts of junk, from Viagra, to those new-fangled Spinners toys, all 10 windows automatically playing really loud, annoying, intrusive videos.
Would you close those 10 windows and carry on? Or would you try to find a way to stop it.
This is a step in the right direction. The internet needs advertising to survive the way we want it to. Free to use. But those intrusive pop-ups are lazy and the equivalent to spam. Lazy adverts, cheap, gun-shot approach. Using the law of large numbers they hope they catch some people, but put no effort into targeting or good adverts.
So google is smart. This plays into their hands for the future.
CRTO? No idea actually, but I hope they don’t use these pop-up/auto-play videos. Anyone know?
1 Like
I wonder if this discussion is the reason behind the drop in TTD today?
Thanks, that seems to explain. I check my MF news feed of followed stocks and they showed nothing, so I guess the MF experts are not concerned either.
The SA Criteo ticker guide made an insightful post after the recent Apple news, if you have a Stock Advisor subscription you can find it at this link:
http://discussion.fool.com/1081/strh-coverage-of-apple-issue-327…